On the Pacific Station Grappler played an important role in the early history of the Colony of Vancouver Island.

Under the command of Lieutenant Edmund Hope Verney, Grappler transported the first 35 British settlers to a new settlement at Comox on 2 October 1862 at the request of Governor James Douglas.

[2] Her small size, steam power, and shallow draft made her useful as a lighthouse tender, for rescue, and for laying navigation buoys.

[3] however She and Forward were involved in the Lemalchi incident in the spring of 1863 when they hunted down and captured natives believed to have murdered some Gulf Island settlers.

At an inquest which followed, it was found that the vessel was not licensed to carry passengers aboard and the owners had failed to make provisions for their safety.